If you really cannot locate your copies of those documents and/or you’ve lost them at some point, you can still find that refinancing is worth the hassle. Streamlined refinancing is being offered for homeowners who have government-backed loans such as the FHA, VA or USDA loans. It’s an option that can save them time and money by expediting the refinance process. If you apply for a streamline refinance to simply reduce your interest rate, there may not be a need for a new appraisal or an income verification.
Just remember that while it might not be the case for most conventional loans, the extra time and paperwork can be worth it when you eventually see your monthly payments come down and finally save more cash.
“Shop around for rates, and don’t rely on banks in your area,” said Bryan Marsden, editorial coordinator of FatWallet.com.
If you think you are moving soon, a refinance isn’t a smart move because you may not recoup the closing costs you spent to save cash on your mortgage payment. Experts recommend that you look for the break-even point of the loan—your total closing costs divided by monthly savings—where you’ll start saving money in your mortgage payments.
Refinancing may sound complex and overwhelming, but once you know what you’re getting into, you’ll understand that it’s a great opportunity for you to save some serious cash before it’s too late. Remember to choose the right refinancing product depending on your time frame, goals, and plans.
